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Should You Quit Your Job Before Launching a Business?

This news story was published on March 17, 2021.
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Starting a new company is labor-intensive. It takes plenty of time and energy that may be in short supply. If you are ready to take this step and wondering if it makes sense to quit your job before doing so, there is no easy answer. You should ask yourself some questions and make the decision that works best with your situation.

How Are Your Finances?

Regardless of what you want to do, if money is tight, you may have a choice but to remain in your full-time job. If you are under a great deal of financial pressure, it may be best to postpone your launch entirely. A fledgling company will not rescue you from financial issues, and you may be better served getting on track personally before starting a business.

If your finances are basically in good shape, look at ways you can free up some extra income to hold you over while dedicating yourself full-time to your new business. Lowering your monthly expenses means you won’t have as much going out, which allows your savings to last a little longer. One way to lower your monthly expenses is to refinance your existing student loan debt into a new payment. This allows you to choose your payment and terms and may make the transition to full-time business owner more manageable.

Will There Be Any Conflict?

Depending on what your future plans are, you may have no choice but to resign before launching. If the company you plan to open is similar to your place of employment, you need to check that your plans don’t violate any existing non-compete clause.

What is Your Energy Level?

If you work in a stressful job or the dynamics create conflict, you may not have the energy needed to continue working while getting a new business off the ground. Only you can decide if it is possible to do both. Some people find renewed vigor once they start planning their exit, while others are unable to focus on the future because they are so depleted at the end of the day.

Can You Find a Compromise?

Depending on your existing work situation and the type of business you plan to launch, you may be able to find a middle ground. For example, you may be able to scale back from full-time hours or take on a consulting role with your company for a specific period of time while you work on your new project. Doing this means that you continue to have an income stream while growing your company and your employer has time to find and train your replacement. This option doesn’t work in all situations, but can be ideal if you are able to negotiate it.

No matter whether you choose to leave your job immediately, remain full-time while launching your business, or negotiate something in-between, it makes sense to leave your employer on good terms. There are a few reasons why this matters. A significant number of new businesses fail, so it is always nice to leave your options open. Also, the people you work for now will be the most recent references you can provide if you decide to return to the workforce later.

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